The key items to consider are:Would the IRS respect "re-characterization" of income?

After I confirm the utilities are in their name I meet up with them again and collect first months rent and give them the keys.

The key is to get the title company to sign off to insure the property. 

Minimizing vacancy is key if you decide to go with lower price points; but cashflow is much more attainable in this market.

@Aaron Tiffany, there's a lot in here, so let's take them one at a time.Multiple loans: the key is to establish a strong relationship with a local bank/credit union.

As long as everyone benefits I dont see why living in a different market would have any influence aside from it being structured a little different (how they are paid, communication, contracts drafted/signed etc.)I have thought about turn-key investments however I don't believe that will give me much experience at all considering I would most likely be buying it right before it hits the market.

Learning from others is key.

You did the right thing by posting on BiggerPockets there's so many great people that are willing to offer you a sound advice.Constantly networking is key.

In a BP article last year, I discuss Three Key Routes for Passive Real Estate Investing .

Finding a good property manager will be key.